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Traditionally Centralized Production Planning and Control (Push) 

Traditionally Centralized Production Planning and Control (Push) 

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Article
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According to Industry 4.0, real-time information in production planning and control, shows a high potential for optimizing the whole supply chain. The paper considers the plant building industry, especially the off-site fabrication and on-site installation. Traditionally, production planning is centralized following a Master Schedule that rarely is...

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Context 1
... of the first tier supplier [24]. As a result, ETO-components are fabricated and delivered to the site for installation according to a static Master Schedule and not according to the real demand. Static means in this case that the schedule is not frequently updated and therefore it does not reflect deviations throughout the supply chain. In Fig. 1, the schematic depiction of a traditionally first-tier ETO supply chain in the plant building and construction industry is visualized. Usually, one fabrication shop has to supply ETO-components to different installation sites. In this case, as an abstracted example, the first-tier supplier delivers to four different installation sites. ...
Context 2
... chain. The Pitch is defined per task and it specifies how much construction progress (e.g. how many rooms) should be completed by a specific crew in a given time period (e.g. day or week) on the installation site. According to this indication the amount of needed components on-site, as well as the needed shop floor drawings are determined. In Fig. 1, the Master Schedule is configured in a weekly granularity level. As a result, in every calendar week (CW), one Pitch is installed at every installation site (1 to 4) and every three CWs an amount of components of three Pitches exits the fabrication shop of the first-tier supplier. The supply chain is coordinated by means of a ...
Context 3
... visualized in Fig. 1, the traditionally centralized production planning and control suffers from a missing feedback loop between the customer (installation site) and the supplier. More in detail, deviations of the different installation sites are not considered in real-time in the Master Schedule, which leads to the following types of waste: 1) ...
Context 4
... of 'Release 1' in Fig. 2. As soon as CW 1 is finished, the performed tasks are recorded and a next planning for CW 2 until CW 4 is done. This process repeats until CW n. Because the Engineering department needs a long preliminary lead-time, it is organized according to the Master Schedule. As different from the traditional approach visualized in Fig. 1, production planning in the fabrication shop is organized according to the order backlog list, which is prioritized in real-time based on different customer requests (Cyclically Planning on the installation sites). More in detail, the prioritization of Pitches (amount of components) to be delivered to the different installation sites ...

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... CPS capture data from the physical world via sensors, use the internet and cloud computing to communicate between the connectors and interact with the physical world using mechatronic actuators (Lee 2008;Zsifkovits and Woschank 2019). This enables autonomous control systems, which can satisfy customer demands in real-time (Spath et al. 2013;Dallasega et al. 2017). CPS, as well as the Internet of Things (IoT), allow enterprises to sense deviations from the schedule as soon as they appear (Magoutas, et al. 2014;Chaopaisarn and Woschank 2019). ...
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... CPS and IoT are combined in Industry 4.0 to the industrial automation domain (Ben-Daya et al., 2017). Industry 4.0 transforms factories into smart factories including all components like devices, suppliers, products, logistics, manufacturing processes, engineering, machines, etc. (Shrouf et al., 2014;Schmidt et al., 2015;Ardito et al., 2017;Ben-Daya et al., 2017;Dallasega et al., 2017;Kamble et al., 2018;Tuptuk and Hailes, 2018;. Industry 4.0 promotes cloud manufacturing, the Internet of Things, big data, robotics, the Internet of Services (IoS), and CPS. ...
... Industry 4.0 promotes cloud manufacturing, the Internet of Things, big data, robotics, the Internet of Services (IoS), and CPS. As a result, all the types of equipment including machines, devices, also, production modules and products, etc. are used in a variety of fields, including management, manufacturing, supply chain, especially in real-time situations (Kang et al., 2016;Dallasega et al., 2017;Pereira and Romero, 2017;Melnyk et al., 2018;Yli-Ojanperä et al., 2019;. To learn more about CPS, interested readers are referred here (Chen, 2017;Lu, 2017;Trstenjak and Cosic, 2017;Gürdür and Asplund, 2018;Li, 2018;Zhang et al., 2019). ...
... Three types of effects between variables are calculated, which are [59,67]: ...
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... A strand of studies on this theme has emphasized I4.0driven changes, such as demands of mass customization and the constant stream of data generation, that entail volatility and constant change in PS solutions [5,36]. Another group of scholars has examined rescheduling strategies based on real-time scheduling approaches, such as AI-based heuristics [13], optimization algorithms [24], and simulations [7,8]. These approaches addressed job arrivals, machine breakdown, and inventory-related uncertainties typical of rescheduling. ...
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... Chakrabarty and Wang (2020) address variation in the stock market and inventory levels using cloud computing and autonomous vehicles, (Sharma and Kulkarni, 2016) use automation incorporating the MIMOSA database and Ontology-based knowledge repositories when proposing spare parts replenishment system framework. In engineering to order (ETO) Production Planning, (Dallasega et al., 2017) propose an information and communication technology (ICT)-supported nearly real-time capable production planning approach, which using a simulation, shows a drastic reduction of the inventory level on-site. In logistics processes, (Busert and Fay, 2019) adopt interfaces of the IT systems to control value stream logistics mapping, (Knoll et al., 2019)propose a methodology that combines multidimensional process mining (MDPM) techniques with proven principles of lean production and value stream mapping (VSM) using existing event data by automatically mapping physical logistics activities. ...
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... Additionally, a value stream analysis based on a Big Data model [67] and the combination of VSM with a simulation [68] are described in the literature. More associated with the development and testing of countermeasures, a publication mentions scheduling solutions based on real-time simulations [69]. Regarding implementation activities, multiple publications report developments in task organization through Kanban boards; namely a web-based board [70], a board operated with a smartphone [71], and a computer-aided task board that tracks a physical panel in real-time [72]. ...
... This requirement can be further supported by on-demand cloud computing resources that allow high-speed simulation analytics [85], as well as IoT to transmit data between machines and sensors to software tools [9]. Regarding practical use cases, this requirement is present in scheduling solutions based on both real-time simulations [69] and the combination of VSM with simulation models in order to validate current and future states, aiding in decision-making processes [68]. ...
... X X X [69] Scheduling solutions based on real-time simulations, allowing to reach on-demand production and JIT delivery. ...
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... The technological solutions are often defined as nine elements referred to as "foundational technology advances" i.e. big data and analytics, simulation, autonomous robots, internet of things, cyber-physical systems (CPS), cloud computing, virtual reality, machine-to-machine communication, and cybersecurity [14]. A common practice for researchers and practitioners tends to be treating the technological solutions as standalone elements [5,[10][11][12][13]. However, to achieve a successful transformation, I4.0 as a whole should be well understood and a clear road map is to be generated and implemented (Lim et al., 2020). ...
... I4.0 projects driven by SMEs often remain cost-driven initiatives [5,11] and to this day there is no evidence of real business model transformation [5]. Empirical cases in research are frequently centered around presenting single applications, emphasizing the low-cost factor as a main advantage and strength of their application [3,[12][13][14][15][16][17]. The implementation of the I4.0 concept implies a major challenge which is resilience and robustness of the production system, which is the ability to absorb manufacturing disturbances without failing or breaking and be able to adapt to major variations and gradually return to its original state or "normal" state and level of performance [18,19]. ...
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This paper proposes a conceptual implementation model for small and medium enterprises (SMEs) to follow as part of their digital transformation. The conceptual model can be translated into a practical step-by-step guide for SMEs to apply during their digital transformation. The model is based on gradually developing industrial capabilities that can influence production processes performance. We employed a comparative case study approach to capture the lessons learned by SMEs in their journey to develop and implement a production digitalization system for deviation management and performance improvement. The model was validated in the cases of study capturing the actual SMEs’ needs. Managerial capabilities of production processes such as monitoring and control demonstrate to influence the performance positively. The proposed model aims for a full digital transformation by following a gradual approach to being resource-efficient and integrating their business needs. This paper is an extension of work originally presented in APMS 2020, IFIP AICT 592.